Developing and implementing e-procurement
Public Procurement in the EU the 2020 Agenda
Governments and Public Administration: 5 Major IT Trends e-services: Increasing efficiency and transparency by delivering services electronically Integrated e-government: Through the virtualization of delivery and by using standard off-the-shelves products and solutions Green IT: Improving green attitude and reducing environmental costs Cloud Computing: Through the virtualization of the infra-structure Competitiveness enhanced by IT: Developing clusters and IT competence at national levels
epp epp In the context of a broader legal and economic reform of public procurement 2007/2011
epp Overall reform environment 2007/2011 Pressure from the market. Opportunity to improve efficiency in public administration.
epp The launch of a new Central Purchasing Body (National Agency for Public Procurement) as the central tool towards a sustainable system.
epp Central Purchasing Body Key values Transparency, equal treatment, fair competition Compliance with National and EU Legislation Sustainability (priority to economic and environmental elements) Encouragement of SME s access to public markets
epp NATIONAL SYSTEM OF PUBLIC PROCUREMENT Key stakeholders Public Entities UMC* Community / Society Tax payers / Citizens Contractors Suppliers Government MoF Community / Society Tax payers / Citizens UMC* National Agency for Public Procurement *UMC: Ministerial Procurement Units
A STRATEGIC TOOL FOR DELIVERING ENVISAGED RESULTS The procurement model components Ordering Aggregation Awarding / Contract Tendering Payment Sourcing Invoicing
A STRATEGIC TOOL FOR DELIVERING ENVISAGED RESULTS The e-procurement model components * * e-tendering e-sourcing e-aggregation e-contract e-catalogue e-ordering e-invoicing e-payment e-awarding Mandatory use since Nov 2009 * Within the scope of the current technological model put in place by ANCP
The legal framework for e-procurement (PT) The Law making process: where policy makers and ICT experts meet Lawyers Principles governing public procurement AND e-public Procurement (EU, EBRD,OECD ) Main sources: EU and National Law The grounds for a trustworthy system: Specific features e-signature Documents transmission, opening and warehousing Time and deadlines management: time stamping Automated decision making versus exclusive competences of awarding/selection committee
Main features of legal regime Institutional law Accreditation of e-platforms - license to operate The process of accreditation is run by CEGER (an entity in charge of the government ICT networks, having no other involvement in public procurement) Independent external compliance audit to each provider / platform Aggregation, centralization and CPBs help delivering the change towards epp
2010 First full year of mandatory e-public Procurement The success of the adoption of e-public Procurement in Portugal is by and large due to the constructive commitment of all stakeholders, namely the already established Public etendering platform operators with several years of experience mostly in the private market. All stakeholders involved in PP trust the system and tools and see epp as a value added improvement. Players involved Contracting Entities Economic Operators Public etendering Platform Operators External Auditors for Platform s compliance auditing National Certification Office of e-tendering Platforms National Agency for Public Procurement ANCP National Portal for Public Contracts InCI Universities Training Institutes Lawyers PP external consultants Court of Auditors Administrative Courts Media PR&Press Political Institutions EU...
Conclusions
The winner partnership/alliance towards the big change Government Industry (epp operators and economic operators interested in accessing public markets) Public Administrations (central, regional and local) The success factors Attitude changing model: Legal, Economic, Educational/Training, Social Marketing Overarching element: confidence Three consistent pillars (Code, CPB, epp) Perception of gains and advantages
Reforming Public Procurement in Portugal Focus on e-tender Public Entities Public budget planning Aggregation Sourcing Order Invoice Pay Suppliers e-catalogue e-tendering Platform Operators e-noticing e-tendering e-awarding Web based tools Report public contracts awarded
e-procurement Lessons learned and major challenges Key issue: Lack of integration of information along the procurement process making it impossible to control and monitor. Solution: develop an end-to-end technological model to ensure not only transparent and cost effective procurement processes, but also the construction of the knowledge base that is needed to support strategic decisions towards public expenditure reduction and optimization:
e-procurement Lessons learned and major challenges e-tendering e-sourcing e-aggregation e-contract e-catalogue e-ordering e-invoicing e-awarding e-payment The Agency believes that implementation of this model will allow it to pursue its mission along three key strategic dimensions: Financial: Obtaining much needed savings and public expenditure reduction both in the short and the long term. Political: Through completely transparent, rigorous and efficient procurement processes. Social: Providing a better service for all stakeholders, achieving their buy-in and contribution, alongside a fundamental cultural change in the Public Administration towards the effective use of taxpayers funds.
e-procurement Set a New Trend of Public Management
e-procurement The Next Step
e-procurement The Next Step e-procurement as support IT Tool to procurement management Each public entity invests in technology, processes and control. Investment in IT integration instead of Process Optimization. Be reactive in data management instead of pro-active. Each public entity invests in their own human and functional skills.
e-procurement The Next Step e-procurement as part of public procurement strategy Build common processes based on functional design, business process & supplier interfaces. Create a shared value sustainable solution reducing investments for the Government. Manage Procurement as a strategy area of Government. Promote corporate Governance in electronic Public Procurement.
Conclusions from our e-procurement knowledge
Key factors to e-procurement Critical Success Factors and Dimensions e-procurement as a new approach to define Public Procurement Strategy and not an IT Tools support to public procurement investment. Investing in a Global Shared e-procurement model optimizes management and decreases waste and redundancy costs. e-procurement success depends firstly on simplicity, transparence, trustable Processes and People skills, and only then on Technology issues. e-procurement is not just Savings, it is also Profits. Governmental Top-Down Project, transforming procurement from tactical to strategic. Political Create a Corporate Governance model to e-procurement and adapt Legislation to the new global trend. Financial Improve a change management plan focused on Implementation. Social Deliver value and service (full visibility into cost, risk, performance) to the Stakeholders and get economic and business compliance.